DUBAI (Reuters) – A proposed reshuffle of state assets would allow Saudi Arabia to delay the listing of national oil giant Aramco until 2020 or beyond while still spending on economic development projects, according to three sources familiar with the matter.

Late last week Aramco confirmed a Reuters report that it was working on a possible purchase of a “strategic stake” in local petrochemicals maker Saudi Basic Industries Corp from the Public Investment Fund (PIF), the kingdom’s top sovereign wealth fund.

Deal - Tens - Billions - Dollars - PIF

The deal could inject tens of billions of dollars into the PIF, giving it resources to proceed with its plans to create jobs and diversify the economy beyond oil exports, including a $500 billion business zone in the northwest of the country.

A major goal of the planned Aramco listing – which was initially slated for the end of 2018 and could prove the biggest IPO in history – was to raise money for the PIF, making the fund an engine for transforming the Saudi economy.

SABIC - Deal - Government - Time - Offer

A SABIC deal would allow the government to buy time for the initial public offer of shares in Aramco, according to industry and international banking sources, who declined to be named due to the sensitivity of the matter.

It could raise roughly as much money for the PIF as an Aramco IPO, while giving the government more time to reach decisions on contentious aspects of the flotation such as whether Aramco shares should be listed on a foreign market as well as in Riyadh.

PIF - Cash - Need - IPO - Sources

“The PIF will have more cash to invest and there is no need to IPO now,” one of the sources said.

Aramco declined to comment on its IPO plans, and a Saudi government official did not respond to a request for comment.

Aramco - Chief - Executive - Amin - Nasser

Aramco’s Chief Executive Amin Nasser said on Friday in an interview with Saudi-owned Al Arabiya...